Subsidiary Company is itself a Holding Company
We now add a fourth Company to the example. This Company is 80% owned by the second Daughter Company:
If a Daughter company also owns part of another Company (or many companies), Hansa Consolidation supports this.
In the second Daughter Company, its ownership of the Grand Daughter Company is recorded in the Daughter Companies setting:
In the Grand Daughter Company, the
Main Owner Percentage register is used to record that it is 80% owned by the second Daughter Company:
The following Transaction is registered in the Grand Daughter Company:
Working in the Consolidation module of the second Daughter Company, we produce a
Balance Sheet without using the Include Daughter Companies option. The Transaction from the previous example makes up the balance of the Bank Account:
When the same report is produced using the Include Daughter Companies option, the balance is calculated from Transactions in the second Daughter Company and the Grand Daughter Company:
The
Reduce Minorities box is checked for the Bank Account in the Grand Daughter Company, so the Net Change is calculated as follows:
| 300.00 | | from D2 |
| + | 850.00 | x 80% | from GD1 (80% owned by D2) |
| 980.00 | | |
A Balance Sheet produced from the Mother Company using the Include Daughter Companies option will appear as follows:
The Net Change is calculated as follows:
| 2,000.00 | | from M |
| + | 1,400.00 | x 60% | from D1 (60% owned by M) |
| + | 300.00 | | from D2 |
| + | 850.00 | x 80% | from GD1 (80% owned by D2) |
| 3,820.00 | | |
Note that Account 702 is calculated from the balances of the Bank Accounts in both the second Daughter Company and the Grand Daughter Company.
The Profit & Loss Report produced from the Mother Company using the Include Daughter Companies option will appear as follows:
The Reduce Minorities check box has been switched on for the Sales Account in the Grand Daughter Company, so the Total is calculated as follows:
| 2,000.00 | | from M |
| + | 1,400.00 | | from D1 (60% owned by M, Reduce Minorities off) |
| + | 300.00 | | from D2 |
| + | 850.00 | x 80% | from GD1 (80% owned by D2, Reduce Minorities on) |
| 4,380.00 | | |
